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businesseconomicseconomics questions and answerstwo firms sell an identical product in a market by setting prices simultaneously. consumers buy from the firm that offers the lower price; if the prices are identical, the firms split the demand. if p is the lowest price (in dollars), aggregate demand is q = 120 – 4p. suppose each firm has unlimited capacity, but that the marginal costs of firm 1 and firm
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Question: Two Firms Sell An Identical Product In A Market By Setting Prices Simultaneously. Consumers Buy From The Firm That Offers The Lower Price; If The Prices Are Identical, The Firms Split The Demand. If P Is The Lowest Price (In Dollars), Aggregate Demand Is Q = 120 – 4p. Suppose Each Firm Has Unlimited Capacity, But That The Marginal Costs Of Firm 1 And Firm
Two firms sell an identical product in a market by setting prices simultaneously. Consumers buy from the firm that offers the lower price; if the prices are identical, the firms split the demand. If p is the lowest price (in dollars), aggregate demand is Q = 120 – 4p.
Suppose each firm has unlimited capacity, but that the
marginal costs of Firm 1 and Firm 2 are $20 and $35 respectively.
Is (24.99, 25) a Nash Equilibrium?
Is (23.99, 35) a Nash Equilibrium?
